Understand The Home Buying Process
Going over this information with your Realtor® will help you start to understand all the steps in the home buying process.
TODAYS HOUSING MARKET
· Where is the Housing Market Today?
· Buyer’s market vs Seller’s market?
· Benefits of working with a Realtor®.
1. SIGN AGENCY RELATIONSHIP and BUYER REPRESENTATION AGREEMENT
2. HOME LOAN PRE-APPROVAL
· Find out your loan approval amount. Outlines cost to close and down payment required by the borrower.
· Understand your leverage in a multiple-offer situation.
· Designate comfortable payments for you and know you’re fully qualified to purchase!
3. SETTING PARAMETERS FOR YOUR NEW HOME SEARCH
· The average buyer looks at 10 homes before finding the right one.
· Let your Realtor® know characteristics you are looking for in your home. Maintain open communication, expressing your likes and dislikes.
· A search will be rendered directly from the Multiple Listing Service (MLS) matching your specific criteria.
· Whether you find a home on the MLS, for sale by owner (FSBO) or new construction you can trust your Realtor® for advice. Always Call Your Realtor® First!
4. WRITING A PURCHASE AGREEMENT
· When you find a house you want to call home your Realtor® will guide you through writing a purchase agreement and negotiate on your behalf.
5. EARNEST MONEY
· This is a check you write that will be submitted with the offer.
· It will be deposited in the sellers’ brokers trust account when your offer is accepted.
· Earnest money is typically about 1% of the total offer price.
· The inspection is to identify property functions, regular maintenance, and possible defects.
· It also allows you time to get to know the workings of your new home.
· We have a list of inspectors that we recommend.
· An inspection typically costs between $250 and $600 and is paid at the time of the inspection.
· Cost varies depending on the lender, but anticipate a fee anywhere from $450-$600.
· Buyer will pay the appraisal fee directly to the lender prior to the appraisal being ordered.
· Appraisals are subjective. They protect the lender’s risks and the borrower. If the appraisal comes back lower than the sales price, we will renegotiate.
8. HOW YOUR REALTOR GETS PAID
· There is a cooperative agreement through agencies using the MLS that there shall be an advertised payout to buyers agents ranging anywhere from 2.4% to 3.15% of the sales price.
· A Broker administrative fee is industry standard and payable as part of your closing costs.
9. LOAN APPROVAL
· This means you now have Full Loan Commitment & REASON TO CELEBRATE!
· All of your time and efforts have paid off.
· Bring a cashier’s check to the closing made payable to the title company for the down payment and closing costs.
· Bring your driver’s license or official photo ID.